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Hey Brother, Would You Take $103B For Qualcomm?

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Chip maker Broadcom Ltd has made an unsolicited $103B bid for San Diego based Qualcomm Inc (QCOM).

Broadcom Limited (NASDAQ:AVGO) is a leading designer, developer and global supplier of a broad range of digital and analog semiconductor connectivity solutions. Broadcom Limited’s extensive product portfolio serves four primary end markets: wired infrastructure, wireless communications, enterprise storage and industrial & other. Applications for our products in these end markets include: data center networking, home connectivity, set-top box, broadband access, telecommunications equipment, smartphones and base stations, data center servers and storage, factory automation, power generation and alternative energy systems, and electronic displays.

Qualcomm’s (QCOM) technologies powered the smartphone revolution and connected billions of people. They pioneered 3G and 4G – and now they are leading the way to 5G and a new era of intelligent, connected devices. Their products are revolutionizing industries, including automotive, computing, IoT, healthcare and data center, and are allowing millions of devices to connect with each other in ways never before imagined. Qualcomm Incorporated includes their licensing business, QTL, and the vast majority of our patent portfolio. Qualcomm Technologies, Inc., a subsidiary of Qualcomm Incorporated, operates, along with its subsidiaries, all of their engineering, research and development functions, and all of their products and services businesses, including, their QCT semiconductor business.

Broadcom reported the following regarding their bid:

-Broadcom Proposal Stands Whether Qualcomm’s Pending Acquisition of NXP is Consummated on the Currently Disclosed Terms of $110 per Share or the NXP Transaction is Terminated

-Broadcom and Qualcomm, Including NXP, Will Have Pro Forma Fiscal 2017 Revenues of Approximately $51 Billion and EBITDA of Approximately $23 Billion, Including Synergies

-Delivers Immediate, Substantial and Compelling Premium for Qualcomm Stockholders

-Silver Lake Partners Provides $5 Billion Convertible Debt Financing Commitment Letter to Support Transaction

Broadcom bids $103 billion for Qualcomm, open to going hostile

Qualcomm said it would review the proposal but the San Diego-based company is inclined to reject the bid as too low and fraught with risk that regulators may reject it or take too long to approve it, people familiar with the matter told Reuters. Broadcom Chief Executive Hock Tan, who turned a small,..

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